Your scenario is just one example of a creative way to get a great deal.

For example, if you are discussing selling a home with a seller, and you tell them, you really should fix this and do that and clean this and you'll get top dollar.

For example, in some cases you can use 75% of the potential market rents added to your max PITI to qualify for the loan for up to 1.2 million.

For example, I bought 10 acres of wooded land for about $500 at the tax sale.

For example. 

For example, if you are discussing selling a home with a seller, and you tell them, you really should fix this and do that and clean this and you'll get top dollar.

Two examples, if you make money please send me a commission :)1) There are many old factories/industrial properties in rural America these days that you can pick up for way below the cost of rebuilding them.

When used for eligible medical expenses, for example, HSA distributions are tax free.

I’m basically trying to find out if there is a cheaper version of a hard money loan, which in this example would cost me $8500 ($3500 at closing plus $5000 of interest assuming I refi out after 6 months).  

It's an example of people drying to drum up business and camouflaging their real intend.